Which of the following is a correct conclusion regarding the successful implementation of fiscal policy?
A. Successful fiscal policy would be easy to achieve if Congress would stay out of the economy and permit natural market forces to restore full-employment equilibrium.
B. Successful fiscal policy is difficult to achieve because in the real world, the investment, net exports, and consumption schedules are constantly shifting.
C. Successful fiscal policy is much easier to achieve today because econometric models make economic forecasting much easier.
D. As the income-expenditure model suggests, fiscal policy planners can move GDP to any level they please by changing tax and spending levels.
Answer: B
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Answer the following statements true (T) or false (F)
1) The American Rule states that the plaintiff must pay their legal fees only the court rules in favor of the defendant. 2) The actual amount a plaintiff will win in a lawsuit is a random variable. 3) From an economic perspective, the decision to settle or litigate depends on actual guilt or innocence. 4) If the expected loss from litigation exceeds the expected gain, the defendant has an economic incentive to settle. 5) If the expected loss from litigation exceeds the expected gain, the defendant has an economic incentiv333) The larger a defendant's expected payment to a plaintiff, the more likely the case will be settled regardless if the expected payment is high due to the plaintiff's probability of winning, or if there is a large potential damage payment.e to settle.
The leading spokesperson for monetarism was
A. Arthur Laffer. B. John Maynard Keynes. C. Ronald Reagan. D. Milton Friedman.
Continuing with the same vacation-insurance company from the preceding question, is there any vacation-day price that would both strictly increase the family's expected utility (compared to no insurance) and strictly increase the profits of the risk-neutral insurance company?
a. No. b. Yes, 3 or 4. c. Yes, 4. d. Yes, 4 or 5.
Bob, the manager and owner of a small company, believes in the theory of efficiency wages. As such, Bob would be most likely to agree with which of the following quotes?
a. "The only place where success comes before work is in the dictionary.". b. "Work hard. Play harder.". c. "Pay a man for the job you want him to do.". d. "Imagination is more important than knowledge.".